Adding money to a profitable account increase ROE?

I have been trading for the past 3 years, however, only becoming consistently profitable for the past 3 months, meaning I have made money every single month for 3 months with the average month being around 8.5%.

I realize that you are never supposed to add to a losing account, however, I have 10x in cash what I have in my trading account and wanted to become profitable before adding. Example, I have returned 28% since the beginning of the second quarter and was going to wait until I made another 22% for a total of 50% before I added more capital. The capital I am planning to add will be 50% of the original deposit. Therefore I will have a 25% cushion to accommodate any possible draw-down before I would potentially go negative. Could successful traders please add what you do to add to an account when you are profitable. Thank you.

Ok, you've been trading for 3 years and you became profitable just last quarter, so you're asking if you should add more funds to the account?

My answer: NO

The first sentence, second paragraph - you answered your own question. Never add more money to a losing position nor losing account.

You have to think about this rationally. You've had a good quarter but only after 12 failed quarters you now truly believe you have a strong handle on the market to add funds to your account? One good quarter is not good enough. You must consistently produce green profits quarter after quarter and with this being your first profitable quarter, I strongly believe you should trade the current balance/equity in the acct and add at least another 2-3 profitable quarters under your belt.

If you can't increase your current balance with consistent profits, then why add funds you're bound to lose.

Thank you much for your response. I think that I may need to explain myself a little better by defining exactly what instruments that I have traded and how long over a 3 year period and exactly what my definition of consistent is.

I started out trading equities for about 4 months with MBtrading. At the time I did not have 25k to meet the daytrading margin and did not really enjoy long term investing. Return was about 20%.

Second I traded options and spreads about 1 year with MB and was up and down all over the place. Making large sums of money and losing it in the same day. Once making 1000% in 2 weeks buying way out of the money puts prior to the meltdown. Return -100%

Third trading futures "eminis" about 1 year really enjoyed, however, learned exactly what leverage is and paid the price. Was up and down had nice winning months and losing months but never an entire quarter. Return -50%

I must add while trading the above, I never had any type of "system" or any money management program that I implemented. I was trading how every new trader does trying to make 100% return 100% of the time. Taking incredible risks only thinking of what I can make instead of what I can lose.

Currently trading Forex demo'ed for 3 months and was up and down had about a 5% return on demo before going live. Opened my live account 1st of April and now am up 28% without a single losing month. For the first time trading any instrument I actually have a trading plan and money management plan which I attribute a great deal of my success to. My account is only $1280 extremely small, however, I have another 10K in cash allocated for when I start making consistent returns, ie. 3 straight months of profit. Thanks again.

i think there is a lack of information for people to truely answer the questions correctly

1) whats the system your trading - is it a new idea thats tailored to fit the current climate? or a long standing system which is well tested?

2) have you got solid rules for trading - are you trading your system correctly and consistantly

3) Ask fellow traders that trade the same system as you there views - only they know if the system warrants the extra investment.

It seems you had a plan to add funds to the account when you became consistantly profitable, i'd suggest reviewing points 1 & 2 and then like Jhig said look for more quarters to be profitable first - Forex is here for the long term, don't be in a rush to get destroyed by it.